Strategic Management And Organizational Culture Of McDonald’s

Background Information on McDonald’s

Discuss about the McDonald and KFC Crises Management.

The organisational strategy is important for the long-term business process and formulated action plan is important for the development of the business. The strategic planning is important in that case and that involves different strategies that help in the business process. The organisation strategy is influencing the goals of the business and after the fulfilment of goals; the vision for the future development evolves. The need for planning for the organisational development is implemented by the actions. The involvement of action and change in the level is the development of the business. The ultimate success has been found by the effective use of all the process and makes some success for the organisation.  But, when it comes to corporate-level strategy in case of solitary business, leading business, related diversification, or unconnected diversification, the arrangement may be dissimilar. This is the major aspect of the business to have the involvement like this, where strategic planning is the key concern of the business (Bolden 2016). Leadership is another important aspect of the business and through the leadership aspect, the organization development and team performance evolved through the process. There are different dimensional aspects persisted in the business but the use of business culture and maintaining a good output is the key concern for the organization. The planning is important for the business development scenario and better business structure influences the process also.

In this paper, the chosen company is McDonald’s and the strategic management of the company along with the cultural identity is the concerning aspect of the business. The dimensions of the company and the general strategy of the company are important and that is the reason most of the business process linkage is aligning with the matter. The culture of the organization and formal structure is also important for the organization. The organizational structure and the importance of communication and decision-making cases for the organization are also discussed in this paper.

McDonald’s is one of the biggest genres of fast food restaurants of America. The company has started its journey in 1940 and till then the market of the company enhancing their position in the international market as well. More than 36,900 places the company has their outlets and the range understands the served area of business. More than 120 countries the company has stretched their business and it enhances better revenue generation also. More than 30,000 franchises are there in association with the company (Mcdonalds.com.au 2018). The business model used by the company is different in the different nation as they realise that every nation has their own culture and belief and that is the reason change in culture and deliver this kind of food to their inhabitants are the key aspect of the business. Headquarter of McDonald’s is in Oak Brook, Illinois and it moved to Chicago Loop in 1971 (Mcdonalds.com.au 2018). The philosophy of McDonald’s is quality, service, cleanliness and value. All these factors are highlighted in this paper and the organisation culture and strategies are the important factors of the organisation. The company has the diverse range of products and all those products trade marking the quality of McDonald’s.

Organizational Culture and Formal Structure of McDonald’s

McDonald’s culture is top attract people to qualified employees and deliver the cultural value of the nation. The habits and values are the concern reason the influence business enhancement in most of the case. If the nation has the priority of having such foods and that reflects their culture, then McDonald’s uses this with their diverse range of foods (Mir and Pinnington 2014). The firm effectiveness and corporate culture is another important factor of business, and the culture encourages the evolution of the new business process. The significance of the organisation culture is huge as there are four major characters that are important for the company. The prioritizations of McDonald’s are Individual learning, Organisational learning, People-centricity and Diversity and inclusion.

The people-centricity prioritises employees need and development. The cultural aspect has set core values of business and emphasises the importance of supporting people. The support comes from the stakeholders, even form the government for doing business in other nations. This is the process that ensures to support people (Millar, Hind and Magala 2012). The cultural engagement or improve the employee engagement is the right way to form the business.

The organisation leaning is a good way of on job training for employees. The improvement of performance and applies new business height is the concerning aspect of the business. The employees are learning from that entire process and the process also pushes the business forward by applying better cultural activity and delivering feedback for knowledge sharing and employee feedback process (Cserhati and Szabo 2014). The learning process is important and that is the reason business has made some step forward for the development of the business. 

In case of individual learning, individual performance productivity is the concerning aspect of promotion. The belief in quality and business effectiveness is the key issue in this learning culture (Wrigley and Bucolo 2012). The company offers learning and development courses and that is the reason personal internship process or the global mobility process is important in business. The individual effort is the key factors and the process motivates employees to know some knowledge oriented work. 

The change in diversity and inclusion of HR activities is the concern matter of this process. The cultural knowledge of each country is different and that is the reason all the countries has highlighted their culture at the CSR report and customer feedback changes the product culture (Mapetere et al. 2012). Customers can provide the best judgement and also state improves in business as well.

Strategic Management of McDonald’s

McDonald’s generic strategy controls its rudimentary approach to emerging its occupational and competitive advantage. As the major fast food restaurant chain in the world, McDonald’s customs its concentrated growth approaches to support sustained business expansion and development. The change in economic development is the major concern in this process as the variation in the market also highlighted in this variant approaches. The generic strategies for the organization are important to set the future development and long-term business approach is realized by the process (Collett Miles 2013). Dissimilarities in market situations impose a burden on the commercial to familiarize or change its strategies. As such, McDonald’s generic approach and rigorous evolution strategies change over the period to confirm long-term business practicality. This is the concern reason for business also.

The strategy of cost leadership is the general strategy of McDonald. The strategy influenced consumer having the ability at the low-cost food rates. The rate of the products is low and that is the reason most of the business acceleration process has happened through this process (Saraf, Singhai and Payasi 2012).  There are some competitors of McDonald and they have set a good amount of price to showcase the quality of the product. In that case, the strategy has taken by McDonald is the crucial one to deliver a quality product with the low range of budget. The effective policy of cost-effectiveness is crucial in that case and this is the general strategy used by the company.

The development of business and product differentiation strategy is another important strategy that company has taken. The analysis of market segmentation and know about the product culture is the main reason that most of the companies are not treating their business, but in case of McDonald, the possible chances of misread the market is quite low as the department of CSR of the company is very proactive and they segmented food for each of the countries (Gerhardt, Hazen and Lewis 2014). The cost minimization policy is the major concern of this fact and that is the crucial effect of business also. The range of products is important in that case, so the company has the better option to diverse the product in different part of the globe and earns better revenue from that.

The business level strategy is different in some cases and that has four levels in which all the business associations are accumulated.

Strategy	Type	Analysis
Corporate level strategy	The constraint type of business process is associated in that case. The high level of diversification is also allowed in that process (Yeu et al. 2012).	Ø  The analysis of saving is the most important factor in this process. Ø  The synergy between local McDonald store and the international market has established.
Business level strategy	The process has two dimensions and each one of them has the individual effect on business. The integrated cost leadership process is the key aspect in that case and leadership differentiation is another important factor for the business.	Ø  McDonald provides customer orientation y with the effective use of quality food, healthier food and cheap price rates. These three factors are important for the organization and customers will be happy with the association of the organization at that rate (Zhu, Anagondahalli and Zhang 2017). Ø  The level of product innovation is important for the company and McDonald has done the process and that will identify the better business market from competitors. Ø  The fast service of food products is another strategy to maintain the customer bonding level and that impacted on the business process.
Corporate or Alliance	The use of vertical strategy is used in the formulation of this process.	Ø  The company alliance with major oil companies and set up some shops and that makes effective business market also (Valax 2012). Ø  The company has some rental spaces where they have rented business to some other companies. Ø  The business with other companies formulates revenue also and that is the concerning aspect of the current strategy of the alliance.
International	The type is entirely global and in the international arena, the business runs.	Ø  The sustainable dynamic environment is the key issue in the business. Ø  The cultural value of each nation has been studied by the CSR of the company. Ø  In case of local restaurants, sensitive social values are highlighted.

Levels of Business Strategy

Table 1: the Current business strategy of McDonald

(Source: Florentina and Georgiana 2012)

Due to the change in strategy company has increased their revenue also and that is the reason corporate strategy and alliance process and international amalgamation is important. As the revenue has shown some enhancement in business, the process of interest, taxes, depreciation and amortization has also evolved in high number in that case (Florentina and Georgiana 2012). The situation is not so positive for the management but the effective use of strategic changes is the key momentum of the matter.

Year	Revenue Growth	EBITDA Growth
FY 2013	2.00%	2.50%
FY 2014	-2.30%	-4.60%
FY 2015	-7.19%	-8.15%
FY 2016 Estimates	-3.45%	1.26%
FY 2017 Estimates	1.30%	3.45%
FY 2018 Estimates	1.85%	3.20%

Table 2: Revenue growth and simultaneous EBITDA growth of McDonald’s

(Source: Osman, Johns and Lugosi 2014)

The use of three dimensions is important for the organisation also as the parameter set by the company links between all the possible affecting manners. The generic level or strategy of McDonald’s in the international market depends on the cost-effective manner and that is the reason business gets flourish in international market also (O’Neill, Beauvais and Scholl 2016). The major use of generic strategy is to deliver the quality product to customers. 

• Value for the food quality
• Value for services
• Value for customers times
• Value for the target market and segmentation

The process of generic strategy is to accumulate more people and understand their need for the development of the organisation. The products are unique and incorporated feature of sustainability of the business is the key concern in this process. The differentiation in cost and delivering their product to all genres of people is the basic identification of company.

The organization culture is another main section of business process and the cultural aspect is formulated in a positive way by the company (Wright et al. 2012). Culture is also directed to the objectives of the company and employees’ satisfaction is also maintained in this section. No such work pressure and burden of the pressure is persisted in that case and that is the reason most of the employee engagement and organisational development has taken place.

• The decision-making process of the culture is simple
• The cultural activities are free from error occurrence
• Food safety and customer satisfaction is controlled
• Build in effective team management and consideration

The use of organisational hierarchy is important for the organisation to flow the business process in a suitable level and the distribution of power is the key concern of this process (Florentina and Georgiana 2012). The maintained hierarchy in the organisation is Top to the Bottom level of balance hierarchy that maintains company positions and maintain the roles and responsibilities of employees.

• Keep the current and emerging market
• The flow of power and decision making situation
• Establishment of changing the business environment
• The managing efficacy in business and supports the organisational structure

The significance of organisation structure is important to understand the flow of the organisation. The structure of the McDonalds has characteristic like Global hierarchy, performance-based division and function based groups (Walker, Ni and Dyck 2015). The focus point of the process highlights the corporate control and that is the major reason management controls the situation. This is a vertical hierarchy that highlights flow of power and roles and responsibilities also. The growth market of the company and recognition in international market controls by the hierarchical process of the organisation.

There are 58 million people working as the employee and each one of them has separate job role and responsibilities. The strategic development and leadership are important in that factor. At the top level executives consists of CEO, Chairman of Board, Directors, CFO, Chief Restaurant officer, COO, Senior Marketing Manager, and Senior Sales Manager – all those roles are one of the decisions making position in which organisation stand in and deliver their best decision-making case to flow their product in international market. The department like Finance takes care of all account related issues in the organisation. As the company strengthen their business in different countries and extend their territory thus more responsibility will come on that department (Shahid and Azhar 2013). The marketing department is also important as goods and product services are controlled by them in different countries. The sales department is another important section of the company. They take care of entire sales and make the count of the percentage of sales and compares with the other months to evaluate the position of the market. Other people are in the Restaurant level executive and that is the concerning aspect of the business formulation. They use to do the ground level work so their involvement with the organisation is the key issue in business. The process consolidates with the business formulation, and as the company states their marketing in all over the globe thus smooth functioning is the key issue that business can grow.

Soft skills like communication are important for the development of business progression. The direct communication with customers is the main factor of this business so communication needs to be perfect, so the customers’ centricity and business acceleration depend on the communication with customers. Sometimes customers pleased with the environment and employee attitude that they recommend other people to visit the place and that basically influences the business acceleration and revenue generation (Shen et al. 2014). There are some effective uses of communication that helps in the organisational culture and operational process.

• Professional communication manages a link between customers and employees and the process help in formulating business.
• Communication helps to understand the rules and regulation of the organisation. If customers are not aware of the situation or the objectives of the organisation, then employees explain them about the organisation.
• The presence and body language also develop by that process and that encourage employees to gain a better position in the organisation.
• Communication sometimes mitigates the conflict situation in the organisation. There are some situations where customers argued with something if that can be handled by the expert employee; they through the communication, the situation would be mitigated by the employee.

Through the training and development process, the level of communication can be developed by the organisation. The development of this skill is important for customer handling and for the sustainable development of the organisation (Barrick et al. 2015). In case of the decision-making process, in most of the cases, executives are taking those decisions for the development of an organisation or to come out form the adverse situation the company fell in.   

• The types of decision making are important in that case and the approach divides into three forms like rationality, bounded rationality and intuition. In case of problem decision making cases employee are the concern factors as the programmes are formulated by them.
• In decision-making conditions, the certainty and risk management is the concerning aspect of business and that is the reason uncertainty is also managing the situation.
• The decision makers’ styles will be directive, analytic, conceptual and behavioural. These forms of decision making help the business process also.
• The decision has to take from best alternatives and that is the reason maximizing, evaluating and implementing are the major prospect that business makes the better decision for the customers.

In case of the better communication process, communication strategies are important for the development of the organisation. In that case, Shannon and Weaver communication model is important to understand that communication strategies taken by the organisations. The model has one specific sender and one recipient and in between the transmission of voice has flown. The factor of noise is the intermediate juncture where noise flow is the crucial matter of business. The receiver could not decode the transmitted wave as the restricted noise is there (Wright et al. 2012). In case of customer handling, such obstruction will come and that hampers the business level understanding and product management. The theory will understand the communication problems and that can be mitigated the communication problems in the organisation. In case of decision-making process setting of organisational goals and the established criteria is important for the organisation (Millar, Hind and Magala 2012). The classifying and the identifying nature of the process is the key matter that delivers successful completion of defining the process. The generative idea and alternatives comparison of the organisation is the key understating that business will face.

The linking strategy with McDonald’s is the key issue of maintaining culture and strategy of the businesses. The cost-effective strategy also accelerates the open culture of the organisation. The culture of people centricity or leaning in the group or individual version is the major aspect of business and this is the crucial factor for business. The process is linked with the organisational strategy also as the strategic implementation like growth or inclusion strategy is the key mater that encourages the business and this is the engagement of strategy and culture. The use of the organisational structure is important in that factor as well (Millar, Hind and Magala 2012). The generic strategy is the key process of business and the low-cost quality food is the key process is the matter. The main challenge in the case is to maintain the low-cost process.

The process of low cost depends on the decision-making process and that formulated by the use of strategic process and leadership issues. As a result of business conditions, it might be deciding on a niche to trail or a revenue model.  In its place of the idea of companies, those companies are in direct competition with, and that are known to be huge in the same conduct that they want their company to be enormous in nature (Millar, Hind and Magala 2012). This group can be for a separation within a very big company looking for to modify the way it functions inside that organization, or for the entire company to redefine itself. The same situation happens with McDonald’s as the strategic changes of the organization and the importance of business are the crucial aspect of the acceleration of business.

Conclusion

Therefore it can be concluded that organisational strategy and business acceleration process is the key factor in business. The same factor has been maintaining by McDonald’s for long. The reason behind the changes is also crucial and that is a major drawback that business has made. The strategic changes and cultural value of the company are crucial in that case. The major aspect of business, in that case, is to highlight the cultural, strategic and formational aspect of the company so that better business processing can be followed.

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